Income Taxes (Tables)

12 Months Ended

Jan. 31, 2015

Components of Income Tax Expense (Benefit)

The components of income tax expense for the fiscal periods presented are as follows:



	Fiscal Year Ended
	January 31, 2015		February 1, 2014			February 2, 2013
	(In thousands)
Current income taxes:
Federal	$	—	$	—		$	—
State	387		949			819
Total current	387		949			819
Deferred income taxes:
Federal	—		—			—
State	340		(152		)	15
Total deferred	340		(152		)	15
Total income tax expense	$	727	$	797		$	834

Reconciliation of Income Tax Expense (Benefit)

A reconciliation of income tax expense (benefit) to the amount of income tax expense that would result from applying the federal statutory rate to loss from continuing operations before income taxes for the fiscal periods presented was as follows:



	Fiscal Year Ended
	January 31, 2015			February 1, 2014			February 2, 2013
	(In thousands)
Benefit for income taxes at statutory rate	$	(10,020	)	$	(16,163	)	$	(18,112	)
State income taxes, net of federal income tax benefit	(249		)	(363		)	(900		)
Valuation allowance	11,670			13,271			19,557
Derivative liability	(795		)	3,723			2
Other	121			329			287
Total income tax expense	$	727		$	797		$	834

Summary of Deferred Tax Assets and Liabilities

The major components of the Company’s overall net deferred tax asset of approximately $4 million at January 31, 2015 and February 1, 2014 respectively, were as follows:



	January 31, 2015			February 1, 2014
	(In thousands)
Current net deferred tax asset	$	5,933		$	3,715
Noncurrent net deferred tax asset	148,132			138,576
	154,065			142,291
Valuation allowance	(150,395		)	(138,281		)
Total net deferred tax asset	$	3,670		$	4,010
Deferred tax assets:
Net operating loss and tax credit carryforwards	$	134,637		$	126,213
Deferred lease incentives	4,546			5,414
Deferred rent	6,172			6,372
Deferred and stock-based compensation	5,050			4,912
Inventory cost capitalization	2,683			2,552
Other	5,798			3,384
	158,886			148,847
Deferred tax liabilities:
Depreciation and amortization	$	(1,073	)	$	(2,920	)
Prepaid expenses	(2,464		)	(2,234		)
State income taxes	(1,284		)	(1,402		)
	(4,821		)	(6,556		)
Net deferred taxes before valuation allowance	154,065			142,291
Less: valuation allowance	(150,395		)	(138,281		)
Total net deferred tax asset	$	3,670		$	4,010

Reconciliation of Unrecognized Tax Benefits



	January 31, 2015			February 1, 2014			February 2, 2013
	(In thousands)
Unrecognized tax benefits, opening balance	$	11		$	324		$	313
Gross increases — tax positions in prior period	—			—			11
Gross decreases — tax positions in prior period	(10		)	(128		)	—
Settlements	—			(185		)	—
Lapse of statute of limitations	—			—			—
Unrecognized tax benefits, ending balance	$	1		$	11		$	324